[Click eStock] "Enox Advanced Materials, Surprise Earnings Relay, Expecting Q3 as Well"

[Asia Economy Reporter Park Jihwan] Kiwoom Securities emphasized on the 27th that Innox Advanced Materials recorded an operating profit of 19.9 billion KRW in the second quarter, surpassing the heightened market expectations. The company is actively pursuing product portfolio and client diversification, and it is expected that structural growth will continue in the future. The investment opinion 'Buy' and the target price of 97,000 KRW were maintained.

Kiwoom Securities analyst Kim Sowon said, "Innox Advanced Materials' second-quarter results recorded sales of 108.4 billion KRW and an operating profit of 19.9 billion KRW, exceeding the raised market expectation of 17 billion KRW."

Although Innoflex's sales fell short of expectations due to smartphone production disruptions caused by parts supply shortages, the Innoled division led strong performance thanks to robust OLED TV sales. The operating profit margin reached a record high of 18.4% due to the effect of improved product mix.

Strong performance is also expected in the third quarter. Analyst Kim said, "Third-quarter results are expected to be the highest ever, with sales of 133.4 billion KRW and operating profit of 25.6 billion KRW, exceeding the raised market expectation of 21.4 billion KRW," adding, "Growth in all business divisions is expected, with the Innoled division leading the strong performance."

He added, "Sales of the Innoled division are expected to grow to 73.2 billion KRW, driven by the launch effects of flagship smartphones such as the iPhone and the expansion of OLED TV panel sales by clients," and "The third-quarter operating profit margin is expected to reach 19%, breaking the record once again."

Analyst Kim emphasized, "In particular, the operating profit margin, which had been maintained at the 13% level for the past three years, is expected to improve to 17%, proving the strengthened fundamentals."